The government has unveiled plans to collaborate with the private sector to establish three garment factories in the Eastern, Central, and Bono East regions, in a major push to boost manufacturing, create jobs, and enhance industrial value chains across the country.
President John Dramani Mahama revealed the initiative in Parliament during his 2026 State of the Nation Address, positioning it as a key step in the administration’s broader strategy to transform trade, industry and value chains in Ghana’s economy. “As a first step, we are collaborating with the private sector to establish three new garment factories in the Eastern, Central and Bono East regions. This will create an estimated 27,000 jobs,” President Mahama stated.
Industrial Transformation and Job Creation
The garment factory initiative is part of a suite of policies the President described as aimed at deepening local manufacturing, boosting exports, and supporting value‑added production in textiles and related industries.
In his address, the President said the Ministry of Trade, Agribusiness and Industry has begun implementing policies in key sectors, including textiles and garment manufacturing, pharmaceutical and vaccine manufacturing, automotive and component manufacturing, and contract farming and agro‑processing.
Establishing the factories in these three regions, if successfully executed, could boost local value chains, reduce reliance on imported garments, and create formal employment for thousands of young Ghanaians, a vital step given the country’s youthful workforce and high unemployment levels.
Linking Industrial Policy and Exports
President Mahama linked the garment strategy to broader export growth initiatives. He noted strong performance in non‑traditional exports, which recorded 27.04 per cent growth in 2025 with earnings of $4.87 billion, reflecting early impacts of the government’s Accelerated Export Development Programme.
The garment factories are expected to complement this export‑oriented agenda by producing local textiles and apparel that can compete in regional and international markets, particularly under the African Continental Free Trade Area (AfCFTA), which seeks to reduce barriers to intra‑African trade.
Revival of Key State‑Owned Enterprises
The President also reaffirmed the government’s commitment to reviving key state‑owned enterprises (SOEs) that once anchored Ghana’s industrial base. He said the Ministry is in the process of sourcing strategic investors to operationalise the Volta Star Textiles Factory, Komenda Sugar Factory, Pwalugu Tomato Factory, the national Meat Factory and Akosombo Textiles Limited.
Revitalising these enterprises, many of which have struggled with years of neglect and operational challenges, is seen as part of an integrated approach to ramp up manufacturing capacity and generate employment across multiple sectors.
What This Means for Local Economies
The apparel and textile industry has historically been a significant employment driver in many economies. For Ghana, the new factories could generate not just direct jobs but also spur demand in upstream sectors such as cotton supply, dyeing, cutting, finishing, and logistics.
Government budget documents show that under the Resetting Ghana Agenda and the 24‑Hour Economy framework, modern textiles and garment manufacturing are being prioritised for their potential to generate export earnings and create jobs at scale, with factories to operate on multi‑shift systems to maximise production capacity.
Challenges and Opportunities
Local production of garments has faced challenges in recent decades, including competition from imported finished clothing and limited raw material supply. However, the Government’s plan to support value chains, including potential policies to encourage domestic cotton production and link agriculture to industry, could provide new momentum for the sector.
If implemented effectively with supportive infrastructure, financing, and market access, the three garment factories could become anchors for Ghana’s industrialisation drive, generating thousands of jobs, expanding export opportunities and strengthening the country’s manufacturing base.
